Home buyers insurance

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Home buyers insurance

Buying a home? Home buyers insurance could help protect you if a sale falls through. Explore this and other key policies you might consider when purchasing a property – and find out when to have cover in place to stay protected from day one.

Compare the Market doesn't compare home buyers insurance. However, you can compare home insurance quotes today to secure the right insurance for your home.

Do I need insurance when buying a house?

Not legally. But there are various types of cover that might be useful. For example, home buyers insurance – sometimes known as home buyer protection insurance – could help if the moving process were to fall through.

You’re not required by law to have buildings or contents home insurance either. But mortgage lenders may insist you have buildings cover in place at the point of exchanging contracts.

What is home buyers insurance?

Home buyers insurance offers cover if your house purchase falls through. It allows you to claim back some upfront costs, like valuation, mortgage and conveyancing fees (up to certain limits).

Home buyer insurance is a specialist standalone policy. It’s not part of a standard home insurance policy. 

Please note: we don’t currently compare home buyer insurance at Compare the Market.

What does home buyers insurance cover?

Home buyer insurance could cover your costs if something out of your control happens to stop the sale going through, such as:

Gazumping – when the seller agrees to a higher offer from another buyer after initially accepting your offer.
Chain collapse – if one of the links in your house sale chain collapses, and you’re unable to continue with your move.
Down valuation – if your mortgage lender’s valuation is less than the price you’ve agreed to pay for the property, they may lend you less money or refuse to give you a mortgage at all.
The seller backing out – they may simply change their minds and decide not to sell.
A bad survey report – if the survey reveals a major problem like subsidence, the buyer may choose to pull out.

Home buyer protection insurance could help claim back fees you’ve already paid if your purchase falls through. These could include:

Conveyancing fees
Survey and valuation fees
Mortgage lender fees
Mortgage broker fees
Gazumping insurance premiums
Accommodation and storage costs.

What won’t home buyer protection insurance cover?

Home buyers insurance typically won’t offer cover if:

The property valuation is more than 90% of the accepted offer (the percentage may vary among insurance providers)
The sale fell through because of delays you caused, or you changed your mind
You didn’t instruct a solicitor
You’re able to get a refund on your fees
You take voluntary redundancy.

Did you know?

Property sales falling through impact one in three transactions, and cost people involved around £400 million a year, according to HM Land Registry.

Is home buyers protection insurance worth it?

Whether home buyer protection insurance is worth it may depend on your personal circumstances and how much risk you’re comfortable with taking on.

Home buyer insurance can be particularly helpful when the market is very competitive and there’s a risk your purchase could fall through.

While home buyer insurance can’t erase the disappointment of losing out on your dream home, it could help mitigate any financial losses.

How much is home buyers insurance?

Prices typically start at around £70 for a basic home buyer protection policy. This could go up to a couple of hundred pounds for the most comprehensive cover.

What other insurance should I consider when buying a property?

When buying a property, you’ll want to consider home insurance. It can help cover the cost of repairing or rebuilding your home or replacing its contents if they are damaged or destroyed. It provides cover against a number of risks including fire, flooding, burst pipes and theft.

There are two types of home insurance to consider: buildings insurance and contents insurance.

Buildings insurance

Buildings insurance covers the bricks and mortar of your home, along with any permanent fixtures and fittings like kitchens and bathrooms.

You’ll need enough buildings insurance to cover the cost of rebuilding your house from scratch. The rebuild value isn’t the same as the market value of the property, though – it’s usually less.

With the cost of building work and materials increasing, you need to make sure you’re insured for the right amount. When you get a quote with us, we can help you work out the rebuild value of your home.

Contents insurance

Contents insurance will cover your possessions once you’re in your new home. It usually includes furniture, home appliances, clothes and carpets.

If you’re moving to a bigger property and end up buying new stuff, you may have to increase the level of contents cover.

If you’re downsizing and taking fewer possessions with you, you might find that you need less insurance when you add up the value of your contents.

Goods in transit insurance

You’ll want to protect your possessions when they’re being moved to your new home. If you already have contents insurance, check whether your policy includes home removals cover.

Some home insurance policies include moving home cover as standard. But they might only cover you if you use a professional removal company. If your policy doesn’t include any kind of removal cover, you may be able to add it for an extra cost.

It’s also worth checking what cover your possessions will have if you’re putting them in storage.

What insurance will I need if I have a mortgage?

If you have a mortgage, you might want to consider insurance that can cover your repayments if you’re unable to make them.

Mortgage protection insurance

This can cover your mortgage payments if you lose your job through no fault of your own or are unable to work because of illness or accident.

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Life insurance

Life cover can be used to clear any debts, including your mortgage, when you’re no longer around. Your mortgage provider may insist you have life insurance in place as a condition of its mortgage offer.

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What home insurance add-ons can I get?

You might want to consider:

Just remember that add-ons typically increase the cost of your premium.

How much does home insurance cost?

Buildings insurance could cost less than £198 per year^[1]

Contents insurance could cost less than £64 per year^[2]

Combined buildings and contents insurance could cost less than £213 per year^[3]

The cost of home insurance is determined by a number of factors. With buildings insurance, factors include how much your house would cost to rebuild and your postcode.

With contents insurance, the value of your possessions and where you live are also taken into consideration. In both cases, whether you’ve made claims in the past will likely be taken into account.  

^[1]51% of our customers were quoted less than £198.00 for their buildings home insurance in March 2025.
^[2]51% of our customers were quoted less than £63.24 for their contents home insurance in March 2025.
^[3]51% of our customers were quoted less than £212.95 for their buildings and contents home insurance in March 2025.

When do I need to have home insurance in place?

Your buildings insurance needs to be in place from the day you exchange contracts. This is when you become legally responsible for your new home. If you already own a property, you might need insurance for both new and old properties if there’s a transitional period when you’re responsible for both.

You may want to update and transfer your existing home insurance policy to your new home. But moving could also be an opportunity to compare home insurance quotes with us and find a better deal.

Bear in mind, though, that if you change your insurance provider part-way through your policy, you may be charged a cancellation fee. But it’s still worth getting quotes to see whether any saving you’d make from switching providers makes the cancellation fee worthwhile.

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What do I need to get a quote?

You can’t compare home buyer protection insurance through Compare the Market. But it’s easy to get a home insurance quote with us. You’ll just need to:

Give us some details about your new home, including when it was built
Tell us its rebuild value (we have a rebuild calculator to help you with this)
Choose the level of cover you need.

If you already have home insurance, it could be helpful to have your current policy documents handy. 

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Frequently asked questions

Do I have to buy home insurance through my mortgage provider?

No, your mortgage provider might suggest you take out their own buildings insurance, but you don’t have to. You can choose any home insurance provider – and it’s worth shopping around to get the most suitable deal.

However, mortgage lenders may require you to have buildings insurance as a condition of their mortgage offer. So, you may need to show your lender you have a policy in place.

How much buildings insurance do I need?

The amount of buildings insurance you’ll need depends on the rebuild value of your property. This is how much it would cost to rebuild your home, not its market value.

Do I need home insurance when buying a leasehold property?

You probably won’t need buildings insurance when buying a leasehold property. The freeholder is usually responsible for this, and you’ll contribute towards the cost through a service charge. But check the terms of your lease to be sure.

The freeholder won’t be responsible for contents insurance, so you’ll need to get this if you want cover for your possessions.

Is it worth getting contents insurance when buying a home?

It certainly can be. Without contents insurance, you’ll have to pay to replace your possessions if they’re damaged, lost or stolen.

Should I get combined buildings and contents insurance?

It can often work out cheaper to get buildings and contents insurance in one policy rather than take out separate ones. It can also be more convenient if you need to make a claim.

But you should always compare quotes to make sure combined cover is the right option for you.

Can I transfer my existing home policy?

Yes, you can transfer your home insurance. But your premiums may go up or down depending on the property you move to.

Do I need buildings insurance for a new-build home?

Yes, you’ll need buildings insurance for a new-build home. Although some newly-built properties come with a warranty, you’ll still want to cover yours against the risk of flooding, fire, water leaks and subsidence.

Do I need buildings insurance if I’m buying a house without a mortgage?

You’re not obliged to take out buildings insurance if you’re buying a property outright. But it could protect you from potentially huge costs if your house is damaged or even destroyed: for example, by a fire.

When might I need specialist home insurance?

You’ll typically need specialist home insurance for a non-standard property. For example, if you’re buying a Grade II-listed house or a cottage with a thatched roof.